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Equity release
25
Half year 2009 results:
As predicted the average age of those
releasing equity continues to gradually fall.
value of equity release plans
The average age for the period was 67
compared to 68 for the same period of 2008.
This continues to follow the trend of the past
couple of years as more are turning to equity
release at younger ages. The Monitor shows
that the core age range for people to release
equity is 65 to 74.
The Monitor reveals the results for the half
year compared to the same period for 2008
and shows that the number of new loans year
to date is 9,852, compared to 11,805 for the
same period of 2008, a fall of 17 per cent. The
total value of new lending is down by 33 per cent
to £372 million.
Whilst the equity release market shows a fall
against 2008 the results show a positive for the
quarter on quarter result for this year with the
number of new plans increasing by 9 per cent
and new lending by over 3 per cent.
Dean Mirfin, Key Retirement Solutions’ group
director, said: “Whilst the number of new equity
release plans arranged is down for quarter 2 year
on year, the value of lending has been harder hit
as a natural result of lower property values. The
average property value for the period this year
was £205,675 compared to £224,487 a year ago.
The positive is the fact that in part the decline in
lending values reflects the increasing uptake of
drawdown plans where customers can release a
lower amount initially and then return for
further funds when needed, this can heavily
reduce the cost of borrowing for customers.
“The result for quarter 2 over quarter 1 are
encouraging and we believe that the demand for
equity release will continue, and following this
turbulent period will return to, and then exceed,
previous business levels.”
Popular uses for equity rlease
www.mortgageintroducer.com September 2009 Mortgage Introducer
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